We bought a $250,000 house last year and have a $90,000 30 year mortgage on it. We live in a nice peacefull village. My husband is getting a new job and is taking a significant pay cut. We should be able make our payments just fine as long as we watch what we spend. I'm in college and we will have a significant income increase in about 3-4 years. We are nervous about the economy and jobs and were thinking about moving to a town about 30 miles north of here where the houses are a lot cheaper. We could buy a decent house outright. Not quite as nice as we have now but still very acceptable. Although the community isn't quite as nice as our current one(we basically live in pleasantville) it is still nice with decent schools for our 2 boys. It also has cheaper taxes and cost of living. There is a great church there that I used to attend as a child also. We just keep thinking about what all that extra money could mean for the future of our family. What would you do?
2007-03-05 02:39:15 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
tough call. This is a buyers market, so you can basically name your price for a house. I think you are right to be nervous, I dont think we've hit bottom yet, so I would have to say that being a pessimist, plan your budget on one income, that way anything above and beyond is a bonus, and if you both lose, you're not that far in the hole. You should have at least one years salary in the bank for emergencies, do you? If not, then by all means take the smaller house and save, save, save. If it weren't for my spend-thrift, tightwad husband I would be in a world of hurt right now. Thank God one of us can save! Like I said, if you are worried, go for it, you can always move when the economy picks up!
2007-03-05 02:50:20 · answer #1 · answered by Ann S 3 · 0⤊ 0⤋
Don't forget to factor in the costs of selling, then buying, moving, all the taxes and government charges, the additional cost of transport from the new location to your husband's work and to your school (and that's not just gas, but a lot more maintenance and wear and tear as well), and the value you place on the additional inconvenience and time if this is a further 30 miles away.
You may find that, financially, you are no better off. Then, you need to consider the benefits of the other place and gauge what they are worth to you.
Only you can make that decision since what it's worth to you is different to what it's worth to someone else. You'll only figure it out by sitting down an putting numbers against it. Otherwise, all the variables will run rampantly around in your head and you'll get nowhere - except confusedville.
2007-03-05 10:59:55 · answer #2 · answered by Terence 2 · 0⤊ 0⤋
I would consider moving and leaving a very small mortgage to maintain my credit. I would then wherever possible save the difference in my outgoings. This will give you a little breather, still save the money but allow you to dip into it if needed.
Alternatively you could stay where you are and have the money invested in your house. It depends on how much you think each house will appreciate in the next 5 years.
Take your current income - minus your expenses for both situtations. Invest the different and add it to the estimated house appreciation in 5 years for both situtions. See which one makes you better off. My feelings would be that staying put would be the most profitable but moving would be the most financially comfortable.
2007-03-05 10:48:24 · answer #3 · answered by Biz Guru 5 · 0⤊ 0⤋
Be sure to factor in the transaction costs of moving. You have to pay a realtor to sell your house. There will be other closing costs, plus the hassle and expense of actually moving your stuff. If you move 30 miles, will you have to change colleges? When you add up the expenses of moving, you may decide staying put is the better option, particularly since your nicer house in the nicer community is likely to appreciate in value. If you ever decided to move back, you would have to pay even more to get what you have now.
2007-03-05 10:49:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
My family and I relocated two years ago to another state to have a better life for our family. We lived in a very expensive town in New York and could barely make ends meet working two jobs and all. It definitely makes sense to relocate and not have a mortgage payment and an easier way of life. I'm sure down the road you are going to want to start a family- you do not want to have to worry about relocating down the road when the kids are in school and all. I say go for it and rely on each other for support going through with it! Good luck!
2007-03-05 10:48:53 · answer #5 · answered by irenepileggi 3 · 0⤊ 0⤋
well it might be very hard to sell your house right now unless you take a loss on the value due to a weak seller's market in most areas-however if you can afford a house outright I would make the move and you can save alot of money for your children's future and your own retirement. I would consult a real estate agent about the current value of your home and what they think the market will get for you. You may also want to consult a financial advisor. good luck.
2007-03-05 10:46:11 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you can cut your expenses then go for it!
2007-03-05 10:44:49 · answer #7 · answered by justcurious 4 · 0⤊ 0⤋
Go ahead , make your day
2007-03-05 10:43:46 · answer #8 · answered by shaikhmohdmusa 4 · 0⤊ 0⤋